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New There's a possibility those that are saying the ...
economy was doing so well are lying.

But, you knew that. :)
Alex

"If I seem unduly clear to you, you must have misunderstood what I said." -- Alan Greenspan, Federal Reserve chairman
New That depends of what kind of economist is viewing
the economy.

The Classical or Kaynesian economists. They also debate over how the unemployment numbers are calculated.

Some information for you to chew on:

[link|http://www.cbo.gov/showdoc.cfm?index=4985&sequence=2|http://www.cbo.gov/s...x=4985&sequence=2]

Notice the chart, September 11, 2001 put the GDP into a nosedive and a deficit. Notice how long they forecast before there is a surplus again.

Bush has the idea to create jobs by cutting taxes:
[link|http://www.cnn.com/2003/ALLPOLITICS/02/27/bush.tax.package/index.html|http://www.cnn.com/2...ackage/index.html]

Not just to the wealthy, but the others as well. Apparently Bush is using both Keynesian and Classical economics here.

According to this news source, the jobless rate has been the lowest it has been in 4 years:
[link|http://story.news.yahoo.com/news?tmpl=story&cid=1896&ncid=1896&e=8&u=/nm/20040708/us_nm/economy_dc_12|http://story.news.ya..._nm/economy_dc_12]

Now Classical economists claim that by supporting the supply side of the economy, you can create jobs. Keynesian economists say you can create jobs by supporting the demand side of the economy.

Now macroeconomics say that consumers will consume, give them more money and they will start to buy luxury (ie normal) goods (like TV sets, etc) instead of low cost (ie inferior) goods. Maybe instead of hamburger they buy steak? Maybe they invest the money? Their spending increases the GDP. This is Keynesian economics.

Large Corporations get tax cuts, and hire on more workers. This also creates jobs. This is supply-side or classical economics.

Bush apparently is playing both fields. It is said that in the third year of the first term of office, a president makes a fiscal policy that benefits everyone in order to get elected for the next term. It just might work.

Anaylsis: there is a deficit, but it is slowly going away. Those in IT such as myself are finding we have to change careers to find a new job. Classical economists see the deficit as a good thing, Keynesians don't see it as a good thing but say that inflation, in under 5 percent, is a good thing for when running a surplus. The real question is "Is the economy reaching its potential output?"



"What's the use of saving life when you see what you do with it?" - Corbin Dallas "The Fifth Element"




[link|http://www.xormad.com:4096/district268|I am from District 268].
Expand Edited by orion July 9, 2004, 07:58:40 PM EDT
     But I thought the economy was doing so well... - (lincoln) - (2)
         There's a possibility those that are saying the ... - (a6l6e6x) - (1)
             That depends of what kind of economist is viewing - (orion)

Using this formulation, the cat can be dead and deader.
70 ms